Prepare the balance sheet

that Balsamo could have avoided this difficult situation. Begin by selecting the labels and then enter the amounts to compute Balaamo's debt ratio at October 31 , 2021. (Round your calculation to two decimal places.) 11=Debtratio= Balsamo's lenders require that the company maintain a debt ratio no higher than 0.50 . Balsamo is with this debt restriction at October 31, 2021. Data table Balsamo Corporation Adjusted Trial Balance October 31, 2021 \begin{tabular}{lcr} \hline \multicolumn{1}{c}{ Account } & Debit & Credit \\ \hline Cash & 15,000 & \\ Accounts receivable & 19,600 & \\ Supplies & 2,200 & \\ Prepaid rent & 2,000 & \\ Equipment & 37,400 & \\ Accumulated depreciation- & & \\ equipment & & $,300 \\ Accounts payable & & 8,800 \\ Interest payable & & 600 \\ Unearned service revenue & & 1,050 \\ Income tax payable & & 2,500 \\ Note payable & & 18,400 \\ & & \end{tabular} Requirements 1. Prepare Balsamo Corporation's 2021 single-step income statement, statement of retained earnings, and balance sheet. 2. Balsamo's lenders require that the company maintain a debt ratio no higher than 0.50 . Calculate Balsamo's debt ratio at October 31, 2021, to determine whether the company is in compliance with this debt restriction. If not, suggest a way that Balsamo could have avoided this difficult situation